A strong quarter throughout the Group - EBITDA increased by 29 percent

SECOND QUARTER APRIL–JUNE

• The Group’s net sales amounted to SEK 284.1 (233.4) million, an increase of 22 percent.
• The Group’s EBITDA was SEK 59.4 (46.1) million, an increase of 29 percent.
• The EBITDA margin was 21 (20) percent.
• Profit after tax amounted to SEK 21.1 (16.4) million.
• Earnings per share amounted to SEK 1.4 (1.1).
• Cash flow from operating activities was SEK 24.4 (33.1) million.

HALF-YEAR JANUARY–JUNE

• The Group’s net sales amounted to SEK 546.9 (456.0) million, an increase of 20 percent.
• The Group’s EBITDA was SEK 115.6 (86.6) million, an increase of 34 percent.
• The EBITDA margin was 21 (19) percent.
• Profit after tax amounted to SEK 40.8 (31.5) million.
• Earnings per share amounted to SEK 2.7 (2.0).
• Cash flow from operating activities was SEK 80.7 (50.4) million.

“POSITIVE DEVELOPMENT FOR ALL GROUP COMPANIES”

Sales growth

The Group’s sales increased by 22 percent in the second quarter. All Group companies experienced strong demand and both business areas showed an increase in net sales. The Specialty Pharma business area reported the highest percentage growth, up 29 percent from the previous year. The growth was driven by the registered pharmaceutical portfolio and also the unlicensed portfolio, which is characterised by fluctuating volumes. As of the second quarter, the Group's net sales for the last 12-month period exceed SEK 1 billion.

Increased earnings

EBITDA increased by 29 percent as all companies in the Group increased their earnings. The margin was 21 percent, an increase of one percentage point.

The Specialty Pharma business area increased its earnings and margin as a result of higher volumes. The MedTech business area also showed an increase in earnings, with a slightly lower margin than in the previous year, which is explained by the product mix and higher purchase and transport costs in some operations.

Strong financial position and acquisitions

Growth through acquisitions is a key part of MedCap’s growth strategy. A small add-on acquisition – Cognita – was completed during the quarter, which complements Abilia’s operations in Norway.

MedCap is working actively to identify and evaluate acquisition candidates, and the number of potential transactions has increased compared with the previous year. The cooling of the acquisition market may affect the acquisition multiples. Overall, with the Group's strong balance sheet and financial capacity, we see good opportunities for acquisitions.

In conclusion

In the second quarter, all Group companies showed a positive trend in terms of both results and operations. We see steps are being taken in the right direction for new product launches in both the pharmaceutical and medical technology portfolios, which are important for continued organic growth. I see good opportunities for continued positive development.

Anders Dahlberg, CEO

Stockholm, 29 July 2022

This disclosure contains information that MedCap AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 29-07-2022 06:30 CET.